What Should I Be Paying Entry-Level Engineers?

While you should want to attract
the best available talent with your compensation package, you shouldn’t overpay
and forfeit money that might be used to grow your company. Further complicating
matters is the secrecy around salary and worker benefits.

It’s important to note
compensation is like any business expense: it’s an investment that must get a
return. Below are a few tips on how to make that investment in your entry-level
engineers.

Determine Your Potential Pay
Range

The average rates for entry-level
engineers establish candidates’ expectations. Sometimes, the industry rate
undervalues employees. High-performing employees can do three, five and even 10
times the work of average employees but make just 20 to 30 percent more. In
other cases, the market overprices value.

In any event, applicants come
into a job offer situation expecting a pay rates in sync with the market. The
websites for Indeed, Salary.com and the Federal Bureau of Labor Statistics are
great resources for salary ranges of countless positions. When looking at these
pay rates, it’s important to make sure your entry-level engineer position is
similar to ones described on these websites.

Managers at other companies are
also a solid reference for pay rate information. Also, calling local staffing
companies can give you a sense of what an entry-level engineer makes. Note you
won’t be paying staffing company overhead, but you’ll be expected to offer
benefits like health insurance and a 401(k) plan.

Consider the Value of Benefits

Speaking of benefits, it’s
important to consider the value of benefits your company offers when deciding
to set compensation. Benefits might be explicit, like health insurance, or they
might be implicit, like the perk of working for a prominent, well-respected
company.

A good way to determine the value
of the benefits your company offers is to poll your current employees. Ask them
which benefits they value and see how those benefits stack up against those on
offer from the competition.

Be Upfront About Compensation

Many companies don’t get specific
about salary until the interview or offer stages of the hiring process.
However, not being upfront can be counterproductive. By posting the
compensation you are offering to potential entry-level engineers, you’re
building trust and establishing transparency, starting your employment
relationship on a good note. Also, being transparent makes for a more efficient
candidate selection process by allowing applicants to opt out before they apply,
if the compensation doesn’t meet their needs.

Anticipate Changes

Everything from automation to
labor regulations is expected to impact the job market in coming years. It’s
important for managers to constantly track regulatory changes and keep up to
date on the latest technology developments in order to avoid being blindsided
by these shifting tectonic plates.